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How to earn from the bitcoins

Mining is a way using which you can easily earn money from bitcoin. When you let the computer calculate, a new coin is generated, and the transaction fee of this newly generated coin and Bitcoin becomes the reward (mining reward).

This calculation refers to the authentication work of Bitcoin transactions using the mechanism of blockchain and proof of work system.

In other words, adding a new block to the blockchain and finding the correct nonce or hash value that matches the new block.

You can mine by simply installing the “excavation program” that is distributed free of charge on your computer and starting it. On the other hand, the total supply of Bitcoin is fixed, so the mining difficulty becomes higher and higher.

Also, if it is “digged” at a stretch, bitcoin will be supplied too much and lose its value, so a calculation problem for mining will be asked once every 10 minutes, and only the first-come-first-served person will be given bitcoin It is like this. Click on bitqt to know more.

This makes it more advantageous to use a computer that can calculate quickly, and intensifies the mining competition.

When the popularity of Bitcoin was low, it was possible to mine with a laptop computer or desktop computer, but now people all over the world are interested and the number of people who are expecting the value and potential of Bitcoin is increasing. Now even computers have been developed.

Even if you can get Bitcoin by mining, it is getting more difficult to make up for it, such as investment in computers and electricity bills.

Since it is almost impossible to mine with one computer, in addition to solo mining, which involves mining by one person, with the cooperation of many people, connecting multiple computers via the Internet We are also using a method called pool mining.

The detailed method of each is described in detail in the mining method of virtual currency @wiki.

In recent years, virtual currency other than the bit coin “ortho coin (alto coin) to mine”, to the way of converting it into Bitcoin miners (minor) also has been increasing.

Earn by buying and selling

The simplest and surest thing is to buy and sell Bitcoin using the Bitcoin sales office. For example, suppose you buy 10 BTC when 1 BTC is 50,000 yen.

The price of Bitcoin increased, and 1 BTC became 70,000 yen. If you sell 10 BTC at that time, the difference will be profit. [20,000 x 10 = 200,000], which is a profit of 200,000 yen?

Earn from transactions

On exchanges like Coincheck, you can do physical and margin trading with Bitcoin using a mechanism similar to stock investment. In normal transactions, you only have the assets you own (bitcoin), but in margin trading you can trade even if you do not have bitcoins.

For example, let’s assume that 1 BTC is 60,000 yen and you borrow 10 to get 600,000 yen of Bitcoin assets. If you sell 10 Bitcoins when 1 BTC reaches 65,000 yen, the Japanese yen balance will increase to 650,000 yen and you will get a profit of 50,000 yen. If 1 bitcoin is 50,000 yen and 10 bitcoins are repaid in that state, the repayment amount of 600,000 yen will be 500,000 yen, and the difference of 100,000 yen will be a profit. If you sell and repay, you will get a total profit of 150,000 yen .

The method of earning in margin trading is to sell Bitcoin at the same rate as when borrowing or at a higher rate and to repay Bitcoin at a lower rate than when borrowing.

For margin trading with coincheck, please see the margin trading overview. Also, leveraged transactions you can also Did you find out how the price of Bitcoin changes and how to earn?

So do mining, buying, selling or trading yourself. These three are the mainstream ways of earning with Bitcoin. Bitcoin price fluctuations are not only a risk but also a big opportunity. If you are doing trading first time then take advice from the expert before startup. So, learn the trading tricks before doing the bitcoin trading.

The views and opinions expressed in this article are solely those of the authors and do not reflect the views of Bitcoin Insider. Every investment and trading move involves risk - this is especially true for cryptocurrencies given their volatility. We strongly advise our readers to conduct their own research when making a decision.